Avoid being stung by new B-BBEE codes
Fin24

Avoid being stung by new B-BBEE codes

2013-10-21 15:13

Cape Town - With the new broad-based black economic empowerment (B-BBEE) codes having been introduced, professional accountants need to be certain of their facts before issuing BEE certificates, according to Faith Ngwenya, technical and standards executive at the South African Institute of Professional Accountants (Saipa).

"They need to confirm that the turnover of the entity is less than the R10m threshold to be rated as an exempted micro enterprise (EME), this is particularly necessary where the certificate is being issued for an entity that is not your regular client" she said.

"In terms of the new codes, the turnover threshold to qualify for EME status has increased from R5m to R10m. This means there will be many more enterprises seeking EME certification than would have required a verification in the previous BEE codes of good conduct."

Professional accountants or accounting officers may issue these certificates, but they must be sure that the enterprises qualify before doing so, to avoid falling foul of the codes and being seen as undermining the spirit of the B-BBEE Act.

The days of online issuing of certificates are over.

Any false declaration will be viewed in the eyes of the law as fronting and as collusion between the company owner and the professional accountant, whether it was negligence in failing to verify the figures or not, she explained.

The professional accountant would be liable for criminal charges, the details of which will be announced later this year by Minister of Trade and Industry Rob Davies.

Ngwenya also advised professional accountants, who wish to become accredited verification agents to be eligible to perform verification of entities with annual turnover above the EME threshold of R10m and above, to ensure that they meet the requirements of the Act.\


Comments
  • Kalahari Kgalagadi Safaris - 2013-10-21 15:42

    Thank you I moved my business out of this thieving country of beggars...

      Odirile Seemise - 2013-10-21 16:49

      Am happy for you. Did you emigrate from this country of beggars?

      Hein Huyser - 2013-10-21 17:10

      Oridile, in your arrogance have you created one single sustainable job? Not? Why not? Next time when you on your way to your cushy BEE job, spare a thought for those who have/are busy/ goint to lose their kobs because of the shortsightedness of some racists in the current regime. That reminds me of some Nationalists in the Pre94 era who wete just as racist. We know how that ended. Mark this date. Millions of people will be jobless because of racist and shortsighted policies guised as policies to "help" the people, whilst it only srrves the agndas of Marxists and Communists. Guaranteed

      Odirile Seemise - 2013-10-21 17:20

      Even copying and pasting a name is hassle for your brain. Arrogance?? What you smoking ain't potent

      Richard Scully - 2013-10-22 06:36

      This BEE is a scam operated by the thieving ANC

      Richard Scully - 2013-10-22 06:37

      Well Kabelo...that's exactly the point...when the business goes so do the taxes you ignoramus

  • Andy Rossell - 2013-10-21 15:59

    The ANC government is persisting with its policies of BEE. This policy has only benefited the corrupt ANC officials and has led to large scale tender rigging. This policy discriminates based on race.

  • Peter Gugelmin - 2013-10-22 08:08

    Do all parties concerned know what is going on? According to recent articles, these amendments still need to be presented to parliament for approval, etc. Yet Ms Faith seems to think that these amendments have already been put into place.

      Gideon de Klerk - 2014-01-15 10:22

      Peter the law is passed and the new codes approved - taking effect in Sep 2015. Most current companies will not even get a rating at all, based on the new codes!

      Gideon de Klerk - 2014-01-15 10:42

      Sorry it's Sep 2014!

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